CBN resolves dispute with MTN

The dispute between the Central Bank of Nigeria and MTN has been resolved according to a statement by the CBN, saying that MTN will now
atone only for the illegal remittances on preference shares issued in
2008.

CBN Governor, Godwin Emefiele

CBN’s spokesman and director of corporate communications, Isaac
Okorafor announced the breakthrough in a statement published on the
bank’s website on Monday.

The MTN also corroborated the truce in a statement simultaneously issued by MTN in Johannesburg.

According to the terms of settlement, the CBN instructed MTN Nigeria
to implement a notional reversal of the 2008 private placement of shares
in MTN Nigeria at a net cost of circa N19.2 billion – equivalent to
US$52.6m (the notional reversal amount).

“This is on the basis that certain certificates of capital
importation (CCIs) utilised in the private placement were not properly
issued.

“MTN Nigeria and the CBN have agreed that they will resolve the
matter on the basis that MTN Nigeria will pay the notional reversal
amount without admission of liability”, MTN said.

“In terms of the resolution agreement, the CBN will regularise all
the CCIs issued on the investment by shareholders of MTN Nigeria of
circa $402,625,419 without regard to any historical disputes relating to
those CCIs, thereby bringing to a final resolution all incidental
disputes arising from this matter.

The CBN said four months ago that MTN should return to Nigerian
coffers $8.1 billion repatriated between 2007 and 2015, because of
capital importation certificate irregularities.

Four banks involved in the repatriation, Standard Bank, Stanbic IBTC
Nigeria, Citibank Nigeria and Diamond Bank Plc, were fined by the CBN.

Standard Chartered Bank was fined N2.47 billion, Stanbic IBTC, N1.88
billion, Citibank Nigeria, N1.26 billion and Diamond bank, N250 million.